The Auburn City Council approved a tax-free weekend for Auburn stores this past June. The tax-free weekend, which removes the Alabama state and city sales tax on some items, will take place from Friday, Aug. 1 through Sunday, Aug. 3.
The tax-free weekend will offer savings for parents sending their children back to school this fall while also allowing other store goers the chance at cheaper items.
Shoppers will be exempt from sales tax on certain items, including clothing, computers and computer supplies and any school supplies worth $50 or less.
According to Davis Wilder, an employee of The Locker Room - a men's clothing store in downtown Auburn - the tax-free weekend attracts customers at a time when business tends to slow down.
Other local business, such as J&M Bookstore in downtown Auburn, found the tax-free weekend does not increase sales.
"It helps a little bit," said Toby Hannah, manager of the art department at J & M. "We don't see as much business as some of the other stores around town, like the box stores. Pricing wise, we just can't compete with these big stores. We order stuff made by the gross and they order stuff made by the thousands."
While stores in Auburn have different views on the business effects of the annual tax-free weekend, both J&M Bookstore and The Locker Room employees agree the local economy would benefit more if it took place when more students are in Auburn for the tax-free weekend.
"The more traffic you have the more business you do, so it would be great for the economy," Wilder said.
Hannah, of J&M Bookstore, echoed Wilder and agreed the store would thrive more on the tax-free weekend if it were closer to the beginning of the fall semester.
"Yes, I think the students especially, if it were closer to the first of the semester, would help our business out especially since our business is primarily the college student business," Hannah said.
City officials said shopping locally keeps the economy moving as well as programs funded by tax dollars.
"Shopping locally helps the local economy and the local businesses that are owned, managed and staffed by your local friends and neighbors," said Director of Public Affairs David Dorton. "The rest of the year, shopping locally does all of that and supports the local tax base that supports a nationally ranked school system, the local streets and water, and all of the city services that citizens expect, including trash and recycling to police and fire to Parks and Recreation."
Items exempt from state and city sales tax:
- Clothing: All human worn apparel suitable for general use is exempt unless it otherwise appears on the taxable list; clothing items must cost $100 or less per article of clothing to be exempt.
- Computers, computer software and school computer supplies: A single purchase with a sales price of $750 or less will be exempt. Exempt item include computers, computer software and any item commonly used by a student in a course of study in which a computer is used.
- School supplies: Any items of $50 or less per item commonly used by a student in a course of study will be exempt. Supplies may include art supplies, reference maps and globes, textbooks on an official school book list with a sales price of more than $30 but less than $50 and books with a sales price of $30 or less per book
Items not exempt from the state and city sales tax include clothing accessories such as purses, jewelry and sunglasses. Also, furniture and devices or software are not exempt from the sales tax.
A list of exempt items may be found on the city's homepage at AuburnAlabama.org.
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